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Data Centers in Georgia

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Georgia – Strategic Bridge for Europe and Asia Traffic

Regional Connectivity Hub for the Caucasus

Georgia serves as the primary digital crossroads for enterprises requiring a footprint in the Caucasus and Central Asian markets. Its strategic position along Black Sea subsea routes provides a resilient foundation for regional operations, bridging the gap between European hubs and Western Asia with competitive operational costs.

Georgia: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable regional crossroads for East–West traffic as of September 2025.
Direct Cloud On-Ramps0 – as of September 2025Nearest on–ramp hubs are located in Istanbul or Sofia.
Power Cost$0.07 – $0.09/kWh, as of September 2025Competitive rates supported by local hydroelectric generation.
Disaster RiskModerate (3.4/10), as of December 2025Primary concerns involve seismic activity and river flooding.
Tax IncentivesYesExemptions available for high–tech data center hardware as of September 2025.
Sales Tax18% VAT, as of September 2025Standard rate for commercial digital services.

Network & Connectivity Ecosystem

Georgia has transitioned from a transit point into a purpose–built regional hub. The infrastructure manages traffic passing from European markets through to Western Asia and the Middle East with high efficiency.

Carrier Density & Carrier Neutrality: Carrier count: over 15, as of September 2025. The ecosystem includes a mix of regional incumbents and agile local providers offering diverse paths through the Black Sea and overland through Turkey.

Direct Cloud On–Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While local on–ramps for AWS, Google Cloud (GCP), or Microsoft Azure are not yet present, low–latency access is achieved via private extensions to hubs in Sofia or Istanbul.

Internet Exchange Points (IXPs): The G–IXP in Tbilisi facilitates local peering, keeping domestic traffic off international long–haul routes and reducing latency for local users as of September 2025.

Bare Metal: Dedicated hardware options are available through regional providers and global players like Leaseweb, providing sturdy compute resources for heavy workloads as of September 2025.

Power Analysis

Energy costs in Georgia represent a significant advantage for colocation tenants managing operational expenses.

Average Cost Of Power: $0.07 – $0.09/kWh, as of September 2025. These rates are among the most competitive in the region, offering a sustainable path for scaling power–dense deployments.

Power Grid Reliability: The national grid is resilient and benefits from investment in hydroelectric power and redundant transmission lines. This infrastructure supports the major data center corridors in Tbilisi as of September 2025.

Market Access, Business & Tax Climate

Georgia focuses on transparency and minimal red tape to attract international digital infrastructure investment.

Proximity To Key Business Districts: Data centers are centrally located in Tbilisi, the nation financial and political center. This proximity ensures that local tech services and government agencies benefit from single–digit millisecond latency as of September 2025.

Regional Market Reach: From a Tbilisi base, providers effectively serve a population of over 20 million across the Caucasus and parts of Central Asia, filling a critical gap in global edge strategies as of September 2025.

Tax Advantage For Data Centers: Specific tax exemptions for high–technology equipment reduce the financial burden of hardware refreshes. This fiscal policy helps operators maintain a modern infrastructure stack while keeping total cost of ownership low.

Natural Disaster Risk

Georgia maintains a moderate risk profile, with hazards managed through specific engineering standards and site selection. The overall risk score is Moderate (3.4/10) as of December 2025.

  • Earthquake: 7.2, as of December 2025. This is the primary hazard, requiring facilities to adhere to strict seismic building codes.
  • River Flood: 6.1, as of December 2025. Risk is managed by locating modern facilities outside known flood zones.
  • Coastal Flood: 6.0, as of December 2025. This is a regional risk primarily affecting Black Sea landing stations rather than the inland Tbilisi cluster.
  • Drought: 5.6, as of December 2025. While it can impact hydroelectric output, the grid remains stable through diverse energy imports.
  • Epidemic: 4.3, as of December 2025. Consistent with regional averages and managed via national health protocols.
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